As Tokenized Securities Scale, Market Fragmentation Emerges as Wall Street’s New Challenge

Tokenized securities are advancing into mainstream finance — but their expansion is exposing a problem that blockchain technology alone cannot solve: how to maintain a unified market when the same financial asset can exist across multiple trading platforms and digital networks at once. Banks, exchanges, and asset managers are racing to build blockchain-based infrastructure to modernize securities trading. Yet the promised benefits — faster settlement, continuous trading — hinge on a harder question: can these systems preserve liquidity, legal ownership, and reliable price formation as they scale?